10:10 FTSE Kick Out Plan December 2019 (Option 1)

Mariana Capital

10:10 FTSE Kick Out Plan December 2019 (Option 1)

This is a ten-year two-week Plan based on the performance of the FTSE™ 100 Index, the Underlying Asset. The Plan is constructed to offer a Potential Return of 7.75% for each year the Plan runs, paid gross, with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.

  • Potential return: 7.75 % per annum
  • Product type: Capital at Risk
  • Investment type: Auto-Call/Kick-Out
  • Closing Date: 17 December 2019
  • ISA Transfer: 27 November 2019
  • Start Date: 20 December 2019
  • Maturity Date: 3 January 2030
  • Market / index link: FTSE 100 Index
  • Counterparty: Goldman Sachs International
  • Investment term: 10 years 2 weeks
  • Kick-out / Early maturity: Yes
  • Barrier type: End of term
  • Barrier level: 70%
Important: The closing date for applications by cheque is 5 December 2019 and by bank transfer is 11 December 2019.
The closing date for ISA transfer applications is 25 November 2019.

Product Literature & Forms

You should always read the relevant plan brochure and any other plan documentation, for full details of the plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document ('KID'), that you should consider, before deciding to invest in the plan.

If you do not fully understand the risks or are unsure as to the suitability of the investment, please contact us

Complete the form and we will email you the requested literature and instructions on how to invest.

Select the application form you require

How to Invest?

1 Firstly, print off and complete our Appropriate Assessment Questionnaire. All applications require two proofs of identity - see the questionnaire for more information.

2 Next download, print and complete the application form available. Note that product applications will have multiple documents, so please choose the one relevant to you.

3 Place all completed documents - questionnaire, proofs of identity, application form and cheques for payment - in an envelope and post to:

Best Price Financial Services,
The Tythe Barn, 5 Eglwys Nunnydd,
Margam, Neath Port Talbot
SA13 2PS

Further Information

The Mariana 10:10 FTSE Kick Out Plan is a 10 year 2 week Plan based on the performance of the FTSE™ 100 Index, the Underlying Asset. The Plan has three options and is constructed to offer a Potential Return of 7.75% in Option 1, for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.

Should the Closing Price of the Underlying Asset on an Observation Date be at or above the Kick Out Trigger Level, the Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.

The Kick Out observations begin on the second anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 20 December 2021 to 20 December 2029).

If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (20 December 2029) the Closing Price of the Underlying Asset is not more than 30% below the Start Level.

If on the Maturity Date the Closing Price of the Underlying Asset is less than 70% of the Start Level (representing a decline of more than 30% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level.

What happens if the Plan kicks out?

The repayment of your Initial Capital and the Potential Return offered by this Plan will depend on the performance of the Underlying Asset on the relevant Observation Dates.

The Plan offers the potential to mature early from the end of the second year and annually thereafter.

The Plan has the opportunity to kick out on an Observation Date providing the Closing Price of the Underlying Asset is at or above the relevant Kick Out Trigger Level (see page 6). As an example, if the Plan kicks out at the end of year 4 with a Potential Return of 7.75% per annum, you will receive the return of 31% gross (4 x the annual return) plus your Initial Capital.

Should the required conditions not be met on any of the pre-defined Observation Dates, you will not receive the Potential Return and your Initial Capital could be at risk.

What happens if the Plan doesn’t kick out?

If the Plan does not kick out or mature early, the repayment of your Initial Capital on the Maturity Payment Date depends on the performance of the Underlying Asset.

If the Plan does not kick out, and on the Maturity Date the Finish Level of the Underlying Asset is less than 82.5% of the Start Level but not less than 70% of the Start Level, you will not receive the Potential Return but your Initial Capital will be repaid in full.

If, on the Maturity Date, the Finish Level of the Underlying Asset is less than 70% of the Start Level (representing a decline of more than 30% from the Start Level) your Initial Capital will be lost at the rate of 1% for every 1% the Underlying Asset is below the Start Level.

Example scenarios of the repayment of your Initial Capital are set out in the brochure. These examples are not exhaustive.  Please be aware that you are likely to receive less than your Initial Capital if you decide to encash the Plan early.

The Reference Levels are as follows: Year 2: 102.5% Year 3 : 100.0% Year 4 : 97.5% Year 5 : 95.0% Year 6 : 92.5% Year 7 : 90.0% Year 8 : 87.5% Year 9 : 85.0% Year 10 : 82.5% (Final Level).

This investment may be suitable if:

  • You have either received advice or a financial adviser has confirmed that this investment is appropriate for you.
  • You understand the risk associated with investing in this Plan (see page 21 of the brochure for more information).
  • You are able to make an informed decision based on the information provided in the Brochure and in the Issuer’s Key Information Document (KID).
  • You understand that the returns are pre-defined and that you will forgo any growth in the Underlyings which exceeds the returns defined in the Brochure.
  • You are comfortable that you are making an investment into a Plan that has a term of ten years.
  • You are comfortable that the Plan’s returns are linked to the performance of the FTSE™ 100, the Underlying Asset.
  • You are comfortable that any Potential Return and the repayment of your Initial Capital is dependent on the continuing solvency of the Counterparty.
  • You are comfortable that your capital is at risk and you could lose some and up to all of your investment.
  • You are looking to invest in a Plan that offers a potential growth payment and not an income payment.
  • You can afford to leave your money invested for the full term of the Plan.
  • You have other savings or investments that are easily accessible to cover emergencies.
  • You understand how the Plan works.
  • You have at least £5,000 to invest.
  • You are comfortable with the fact that the Plan may mature early (kick out).

Don’t forget the risks

All investments carry risk. It is identifying those risks, understanding how they may affect an investment and assessing whether an investment is suitable for your circumstances that is important.

The potential returns of most structured products and repaying the money invested are usually linked to the level of a stock market index and also depend on the financial stability of the issuer and counterparty bank. You should only consider investing if you understand and accept the risk of losing some or all of any money invested.

You should always read the relevant plan brochure and any other plan documentation, for full details of a plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document (‘KID’), that you should consider, before deciding to invest in a plan.

Structured products should only be considered as part of a diversified and balanced portfolio.

Below is a summary of some of the main risks usually associated with an investment in structured products plans:

Market risk to potential returns

Whether or not a plan generates the potential returns for investors usually depends on the closing level of the relevant index on the relevant dates for the plan, i.e. the kick-out anniversary dates for kick-out products; the early maturity dates and end dates for growth products; the annual income dates for income products.

If the index closes below the level needed, for the plan or plan options chosen, on all of the relevant dates, the plan or plan options will not generate a return.

Market risk to repayment of money invested in 'Capital-at-Risk' plans

If the closing level of the relevant index is below the level needed on all of the kick-out anniversary dates or early maturity dates, if relevant for the plan or plan options chosen, and on the end date, repaying the money invested at maturity will usually depend on the closing level of the index on the end date..

Different structured products use different types of protection barriers. Some products use barriers that are observed every day that can therefore be breached on any day during the investment term, while some products use barriers that are only observed at the end of the investment term and that cannot therefore be breached during the investment term.

Market risk to the repayment of money invested on the end date will depend on the type of barrier and its level.

For example, for a product with an end of term barrier, set at 60% of the start level, if the index for the plan closes at or above 60% of the start level, on the end date, money invested will be repaid in full (less any agreed adviser fees and withdrawals). However, if on the end date the index closes below 60% of the start level, the amount of money repaid (less any agreed adviser fees and withdrawals) will be reduced by the amount that the index has fallen. For example, if the index has fallen by 45%, the repayment of money invested will be reduced by 45% (meaning that investors will get 55% of their investment back).

'Protected' types of structured products

Some structured product plans are designed so that they are 100% protected from stock market risk at the end date.

It is important to understand that even if a structured product plan is designed with 100% protection from stock market risk, at the end date, it will still usually have issuer and counterparty bank risk. In other words, both the potential returns of the plan and repaying the money invested at the end date will depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.

Issuer and counterparty bank risk

Both the potential returns and repaying the money invested of most structured products depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.

Financial Services Compensation Scheme ('FSCS') protection

It is important to understand that it is not usually possible to claim under the Financial Services Compensation Scheme if the issuer and counterparty bank fail to meet their obligations or if the stock market index that a plan links to falls.

Structured deposits

Structured deposit plans are deposit-based and will usually be fully protected from stock market risk at the end date and also benefit from the protection of the Financial Services Compensation Scheme, if the bank or building society is a licensed UK deposit taker.